If the tenant renews the tenancy or stays at the property on a rolling tenancy, the warranty has to be renewed by the tenant. Reposit charge an administration fee for renewing the warranty which as of 1st March 2024 is only £30.00. If a new tenant joins a pre-existing tenancy (i.e. a Tenant Swap) the fee is £50.00
If the tenant vacates the property the normal check out inspection is conducted and any dilapidation's discussed with the tenant, including any rent arrears. If the dilapidation are agreed, the tenant pays for those to be remedied. If they fail to pay, a claim is submitted to the Nil Deposit Scheme and if successful the insurer will pay out the costs and then look to recover them from the tenant.
If the tenant disputes the costs they have the option to take the claim to independent arbitration for which they pay a fee. In the event that the independent arbitration agrees with the tenant, this fee is refunded.
Tenants should be aware that the financial cover for which they are liable under the Nil Deposit Warranty is the equivalent of 8 weeks rent. up to a maximum of £5000.
The Nil Deposit Scheme is an insurance based scheme, so unlike the traditional deposit scheme, the initial warranty premium and any renewal fees are not returned to the tenant at the end of the tenancy.